On January 1, 2019, Japan Company signed a 8-year lease for warehouse space. The lease contract contains a renewal option for an additional 8-year period on January 1, 2022. On January 2, 2021, Japan completed substantial improvements to the warehouse. The cost of these improvements was P420,000 with an estimated useful life of 15 years. If the likelihood of renewal is highly probable, what is the carrying value of the improvement on December 31, 2023 statement of financial position?

360,000

336,000

330,000

364,000

(pls provide complete & correct solution thank you)